What is the interest coverage ratio?

http://parrottcpa.blogspot.com/2013/09/what-is-interest-coverage-ratio.html

What is the interest coverage ratio?

The interest coverage ratio is a financial ratio used to measure a company’s ability to pay the interest on its debt. (The required principal payments are not included in the calculation.) The interest coverage ratio is also known as the times interest earned ratio. The interest coverage ratio is computed by dividing 1) a corporation’s […]

Rebecca Parrott Tatum, CPA

Parrott & Associates
(770) 292-0962
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About parrottcpa

Parrott & Associates, Certified Public Accountants Specializing In Business & Individual Taxes, Accounting & Payroll Located in Cumming, Georgia http://parrottcpa.com/
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